Overnight trade was 3-7 cents weaker across the three contracts, as the fund short positions have been whittled down in the rally. Funds liquidated 25k contracts of the CME short position during the week ending 4/26, although daily estimates showed a slight increase during the same period. Net positions show funds short 65k contracts of CME and basically flat KC wheat. Recent precipitation will be able to soak in and benefit the crop during the next 5 days, as a dry but normal temperature pattern sets in. There have been reports of improvement to the Black Sea and EU crop, which will just add to the very adequate world supply this year. Domestic cash markets remain firm for rail markets, due to final coverage from mills and a wide MGX/KC spread pulling high pro HRW to replace some HRS, but interior truck markets are flat to softer. Look for a weaker start to the weak in reaction to fund positions reported Friday.
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